Operating Results for the Fiscal Year Ended January 31, 2011, and Dividend Policy

In the fiscal year under review, ended January 31, 2011, sales and other operating revenues were bolstered by several factors, including an increase in the number of concerts held at Tokyo Dome; the first full-year contribution from the refurbished Geopolis indoor amusement park and the newly opened Splash Garden at Tokyo Dome City Attractions; the holding of the 63rd Japan Keirin Championship at Matsudo Keirin Racetrack; and the full-year operation of SPA EAS, an urban hot-spring facility located near the west exit of Yokohama Station. However, Tokyo Dome hosted fewer baseball games than the previous season owing to the absence of such series as the Tokyo Round of the World Baseball Classic (WBC), and Japanese professional baseball's postseason Climax Series and Japan Series, which collectively accounted for 16 games in the previous fiscal year.

Owing to these and other factors, the Company faced difficult conditions. As a result, on a consolidated basis, sales and other operating revenues for the fiscal year under review amounted to ¥81,404 million, a decrease of 0.6 percent compared with the previous fiscal year. However, through the implementation of stringent cost controls, operating income totaled ¥8,663 million, an increase of 3.2 percent. Ordinary income amounted to ¥4,835 million, a decline of 41.7 percent. This decrease was mainly attributable to the absence of amortization of negative goodwill—recognized when Matsudo Kousan Co., Ltd., became a wholly owned subsidiary—which concluded in the fiscal year ended January 31, 2010. Net loss amounted to ¥873 million, principally reflecting such factors as the recognition of extraordinary losses relating to fixed asset disposal expenses accompanying the commencement of the Parachute Land zone redevelopment project, which is scheduled for reopening in summer 2011, and impairment of fixed assets at an affiliate company; and the reversal of a portion of deferred tax assets accompanying the revision of future profit projections.

Although the Company's basic dividend policy calls for maintaining stable dividends, owing to consecutive net losses in the fiscal years ended January 31, 2010 and 2011, the Company has decided to forgo cash dividends applicable to the fiscal year under review.

Formulation of New Medium-Term Business Plan

The Tokyo Dome Group withdrew from the financing business in the fiscal year ended January 31, 2007 and the golf resort business in the fiscal year ended January 31, 2008, and subsequently worked to realize its growth strategy through the implementation of its previous medium-term business plan, "Scale Up". In addition to commencing operations at MEETS PORT, Geopolis and Splash Garden within Tokyo Dome City, the Group has carried out a range of new initiatives, including the launch of the TD Point Program and contracted operations at SPA EAS. However, owing to the impact of the global financial crisis and other factors, we have been unable to attain the growth trajectory initially envisaged. On the contrary, the operating environment has become progressively more severe year by year.

Under these difficult circumstances, the Company formulated its new medium-term business plan, backed by its resolve expressed in the following way: "In December 2011, the Company will celebrate 75 years since its founding. This is an opportunity for us to make a new start as we head towards the Company's 80th anniversary. We will exercise our wisdom and rise to meet new challenges". The new plan covers a five-year period, and focuses on the following management targets and challenges.

Management targets

1. Operating income of ¥10,000 million in five years time
2. Consolidated interest-bearing debt of ¥170,000 million in five years time
3. Payment of dividends based on a target payout ratio of 30%, and execution of stock buybacks along with retirement of treasury stock

Management challenges

1. Break out of the trend of earnings decline
2. Research and development of new growth strategies
3. Implementation of measures to strengthen the Group's underlying business structure

Outlook for the Fiscal Year Ending January 31, 2012, and Impacts from the Great East Japan Earthquake

During the fiscal year ending January 31, 2012, although Tokyo Dome is scheduled to increase the number of concerts it hosts compared with the previous fiscal year, Matsudo Keirin Racetrack will not host the Japan Keirin Championship. Furthermore, we anticipate a decrease in sales and other operating revenues owing to an extended suspension of operations at Tokyo Dome City Attractions following the accident on January 30, 2011, on the Spinning Coaster "Mai-Hime"; a decline in operating income; and a recovery in net income owing to such factors as a decrease in equity in loss of affiliates. Specifically, on a consolidated basis, we forecast sales and other operating revenues amounting to ¥80,400 million, operating income totaling ¥8,500 million, ordinary income of ¥5,700 million and net income amounting to ¥4,100 million.

However, shortly after we launched our new medium-term business plan, named "Activate", Japan was struck by the Great East Japan Earthquake on March 11, 2011. The full ramifications and outlook for the Japanese economy are still unclear, and the enormous damage sustained from the earthquake and tsunami as well as electricity supply shortages resulting from the accident at the Fukushima Daiichi Nuclear Power Plant are causing widespread disruption to manufacturing operations and leading to a slump in consumer confidence. In addition to delivering a serious blow to the overall Japanese economy, the earthquake and its aftermath is expected to have a significant negative impact on the Group's operating performance.

Although the first fiscal year of the plan's implementation will be affected by an abrupt change in the external environment, during the five-year span that the "Activate" plan covers we are committed to meeting the key management challenges set out in the plan and achieving the stated targets by mobilizing the full potential of the Tokyo Dome Group.

As we endeavor to meet these challenges, we again look forward to the ongoing support and understanding of our shareholders and all our stakeholders.

June 2011

Representative Director, President and COO